PlaNYC Initiative to Improve the Fuel Efficiency of 10,000 Black Cars - the Next Step after Conversion of Yellow Cabs to "Green"

Black Car Emissions Will Be Cut in Half

Mayor Michael R. Bloomberg today announced that the Taxi
and Limousine Commission (TLC) will require black cars
that service corporate clients to increase fuel efficiency standards to a level
currently achievable only by using hybrid technology. The plan to improve
the fuel efficiency of the 10,000 black car fleet was envisioned as part of the
Mayor's PlaNYC 2030, a comprehensive set of 127 initiatives aimed at reducing
New York's carbon emissions and meeting the challenges of the City's growing
population. In December, the TLC voted unanimously to approve regulations
that will require all yellow taxis licensed after October 1, 2008, to meet fuel
efficiency standards currently only achievable through the use of hybrid
technology. Black cars currently release 272,000 tons of CO2 equivalents
annually, which make up 2% of the City's transportation related emissions.
Under the new standards, emissions from black cars will be cut in half. To help
drivers finance the down payment associated with buying a new car, the City has
worked with partners in the financial sector, auto dealers, and black car fleets
to develop a range of solutions that will finance the higher down payment.

"Over the past several months, the companies that use
black cars have been meeting with drivers, base operators, car dealerships, and
financing groups to figure out the best way to achieve a greener fleet. In the
end, they asked the City to take a regulatory approach," said Mayor
Bloomberg. "We've come up with a proposal similar to the new yellow cab
standards, which the TLC board approved unanimously last December. Between
yellow taxis and black cars, more than 23,000 TLC regulated cars will be
required to be more efficient. This will allow us to achieve substantial
emissions reductions for our City - and keep us moving towards our long-term
goal of creating a truly sustainable City."

"It is to the great credit of black car industry leaders
that they have collectively embraced Mayor Bloomberg's efforts to reduce harmful
emissions," said TLC Commissioner and Chairman Matthew W. Daus. "Not only
will the greening of the corporate car fleet reduce its carbon footprint for a
cleaner environment, but black car drivers will see more green in gas savings
and passengers will also enjoy riding in newly purchased vehicles as well."

Approximately 10,000 black cars operate through bases
that typically contract with corporate clients. Many black cars line up,
idling in front of office buildings in Midtown and Lower Manhattan awaiting
customers. Hybrid automobiles switch to battery power while idling,
significantly reducing emissions of both carbon dioxide and dangerous
pollutants. The City developed this plan through substantial outreach with black
car users, fleet bases, dealerships, financing entities and other industry
stakeholders. It requires the City to take a regulatory approach to
cleaning the City's black car fleet - by adopting a TLC rule change - as well as
complimentary measures by the industry to ensure that drivers can comply with
these rules easily, and reap the savings from driving a more fuel efficient
car.

Currently, black cars average 12-15 mph. The TLC
will require fuel efficiency standards for new licensed black car vehicles of
25mpg in 2009 and 30mpg in 2010. Also included in the proposed rule change
is a requirement for vehicle retirement. The TLC currently does not set a
vehicle retirement age for for-hire vehicles like it does for the yellow
taxis. There will be a retirement phase-in cycle that will ensure almost
all vehicles associated with black car bases are more fuel-efficient by
2013. Black cars currently contribute 272,000 tons of CO2
equivalents annually, which make up 2% of the City's transportation related
emissions. Under the new standards, emissions from black cars will be cut
in half.

Hybrid cars will save owner-operator drivers upwards of
$5,000 per year in gasoline expenses - approximately 50% of their current fuel
costs. These savings will allow drivers to cover, in just one year, the
additional cost of purchasing a new hybrid car over the currently used Lincoln
Town Car. As part of PlaNYC, the City proposed a State law to waive the
City portion of the sales tax for vehicles that meet the EPA Elite standards for
energy efficient vehicles, and the City is looking forward to working with State
Legislators this year to enact that proposal. The City is also working
with the Partnership for New York City and several financial institutions on a
program to provide financing.

"The Partnership represents international companies that
are committed to reducing carbon emissions in New York and around the world,"
said Kathryn Wylde, President of the Partnership for New York City.
"Through our Investment Fund, we are working with Deutsche Bank, Merrill Lynch
and others to provide black car owners with the financing required to upgrade
their cars to more fuel efficient vehicles."

"We are most pleased to be able to join with the Mayor,
fleet operators and drivers to commit to a transition to fuel efficient
vehicles," said Seth Waugh, CEO, Deutsche Bank Americas. "For Deutsche
Bank, we have had a long-standing commitment to sustainable practices - in how
we work to reduce our own carbon foot print and how we assist our clients to
achieve their own sustainability objectives."

In addition to the Investment Fund spearheaded by the
Partnership, SmartTransportation.org and Deutsche Bank, Lehman Brothers has
partnered with Executive Transportation Group (ETG), the largest black car
supplier in New York, to jointly fund a first-of-its-kind lending company, Green
Car Funding Corp. to provide low interest loans to ETG black car owner operators
to purchase new hybrid vehicles.

"Lehman Brothers is proud to take the lead in supporting
Mayor Bloomberg's hybrid car initiative. This solution should make it
easier to turn black cars into green cars," said Scott Freidheim, Co-Chief
Administrative Officer of Lehman Brothers. "Our effort is a small step
that can have a big impact for all of New York."

"The greening of the black car industry in the plan
announced by the Mayor can be a win for all parties. As a member of the
black car industry, I appreciate the City including us in the planning process,"
said John Acierno, President of Executive Transportation Group. "This plan
offers a balanced approach and a staggered implementation that will provide the
people who live and work in New York the great benefit of cleaner air while
allowing the industry to manage the change."

"I applaud Mayor Bloomberg, the TLC, the banks, and the
fleets for developing this important policy - and particularly for doing so
through an imaginative partnership," said Marcia Bystryn, Executive Director of
the New York League of Conservation Voters. "Black cars are important for
our economy but their pollution is a problem for our climate and our air
quality. This plan will improve both. As they are doing with smoking
policies and now with hybrid taxi cabs, cities around the world should follow
New York's lead in helping and requiring black car fleets to go hybrid."

Through extensive consultation with users, fleets, and
drivers - including demonstrations of the new vehicle types - the Mayor's Office
of Long-term Planning and Sustainability and the TLC have identified several
efficient vehicle models that will have widespread acceptance, including: Toyota
Camry Hybrid, 33mpg (city); Toyota Highlander Hybrid, 27mpg (city); Nissan
Altima Hybrid, 35 mpg (city); and Mercury Mariner Hybrid FWD, 34 mpg
(city). In addition, other models may include: Lexus Rx400h AWD, Ford
Escape Hybrid AWD, and Toyota Prius. Outreach to dealerships indicates
that there will be an adequate supply of vehicles. In addition, two
networks of dealers of the most promising vehicles - Best Ford Taxi and Hudson
Toyota / Penske Automotive Group - have committed to making financing packages
available to black car drivers. TLC will not penalize drivers who show
proof that they have ordered a vehicle that meets the standard, but the vehicle
has not yet arrived.